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SHU Portfolio: Skechers Is Remarkably Cheap

October 5th, 2017 · No Comments

  • No retail apocalypse for Skechers. Its US stores revenues are up 14.5% with same store sales up a whopping 7.7%.
  • Its international business is also booming, and after heavy investments this year, that will show off on the bottom line next year.
  • Yet the shares went down after the Q2 good news show, except the earnings miss, but that should be redressed next year.
  • An EV/S valuation of 0.8 seems too low in this market for a company growing in the mid teens.
  • Especially considering a very healthy balance sheet, a solid profit outlook, and plenty of cash generation.

Source: SHU Portfolio: Skechers Is Remarkably Cheap – Skechers USA Inc. (NYSE:SKX) | Seeking Alpha

Tags: SHU Portfolio · SKX